Radar Company sells bikes for $550 each. The company currently sells 4,300 bikes per year...
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Radar Company sells bikes for $550 each. The company currently sells 4,300 bikes per year and could make as many as 4,660 bikes per year. The bikes cost $235 each to make: $160 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 360 bikes for $510 each. Incremental fixed costs to make this order are $48,000. No other costs will change if this order is accepted. Compute Radar's additional Income (ignore taxes) if it accepts this order 1:54.55 Incremental incremental Incremental Amount per Fixed Income from New Unit Costs Business $ 510 Sales Variable cost Contribution margin 160 Fixed costs Incrementul income Closs) from new business The company should
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